Bitcoin: A Peer-to-Peer Electronic Cash System
Let's take it back to Peer to Peer (P2P). These are just people, peers, individuals, working together to achieve a common goal. P2P file sharing is for example applications such as Napster, Limewire, and Bearshare. All of which I had back in the height of music piracy. The transformation from CD to digital happened right before our eyes and occurred through my middle and high-school years of 2001 - 2007. Downloading MP3s and MP4s in a centralized location was a beautiful disaster for uploading and downloading potentially corrupt files from another person's computer, yet millions still did.
Not many years thereafter, technological innovations moving at the speed of light made room for a new global currency system that would prove all the naysayers wrong. Rooted in computers around the world acting as a decentralized system. Bitcoin was introduced to the world by an anonymous person or group called Santosh Nakamoto and has since then been claimed by the Japanese.
The Bitcoin White Paper was written by the pseudonymous group and detailed the block-chain manifesto from which all cryptocurrencies in circulation today use as a framework or foundation.
P2P has come so much further in its evolution when you relate it to block-chain technology created today. Bitcoin, the largest and most famous block-chain, is seeking to disrupt the centralized control that banks and other financial institutions have over money.
What has now captured the attention of millions, topping $17000 just three years ago and $11000 today. Large governments, corporate banks, and financial institutions of all kinds have felt threatened by this emergence of power. The safety of banking uprooted by digital currency. Programmable money, what the internet did for information, bitcoin is doing for money.
How does it work?
Bitcoins are bought and sold in a blockchain. It is the very backbone of the Bitcoin network. ... Miners put specialized computers to work solving an algorithm and a very power-intensive computing problem which allows them to chain together blocks of transactions (hence Bitcoin's famous “blockchain”).
For this service, miners are rewarded with newly-created Bitcoins and transaction fees.
https://www.blockchain.com/explorer
You can watch the transaction progress by searching the transaction code provided by your crypto wallet during receiving. Find your "Send to Address" Example: 3NCTDZcoamznWAh97qL96QV7P4NXxmf6G8
Transactions codes expire after 2-8 HrsRising Value
One reason for the rise in the value of bitcoin over time has been the structure in which it was designed. There is a finite number of bitcoin in circulation which essentially helps in this valuation.
Some Things to Know
There are only 21 million bitcoins that can be mined in total.
Once bitcoin miners have unlocked all the bitcoins, the planet's supply will essentially be exhausted, unless bitcoin's protocol is changed to allow for a larger supply.
Bitcoin is similar to gold, the fixed supply of the currency means that banks are kept in check and not allowed to arbitrarily issue fiduciary media.
Miners will s have an incentive to validate the bitcoin block-chain because they will collect transaction fees from users.
Here's my referral link for Coinbase. Get $10 in free Bitcoin when you buy or sell $100 or more: coinbase.com/join/shumpe_a?src=ios-shareThere are many different cryptocurrencies other than Bitcoin and we will review those in the next article! (Litecoins, Etherium, Ripple and more...)
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